Certified Division Order Analyst (Cdoa)

Front 1

Rule Against Perpetuities(RAP)

Back 1

future interest must vest within 21 years of a life in being

Front 2

Rule of Capture

Back 2

correlative rights doctrine: allows equal rights between adjacent land or mineral owners

*CA is a little different - enforces correlative rights in field not courthouse: owner of O&G rights can drill on his property and retain substances brought to surface on his land

Front 3

Fee Simple Determinable vs. Reversionary Intersets

Back 3

ownership both subject to an event happening

reversionary interest: interest goes back to the original owner

fee simple determinable: property can go to anyone else.

Front 4

Payments to remainderman vs. life tenant

Back 4

Remainderman receives corpus (body of estate used or produced: i.e. minerals): royalty & bonus(*); generally put in suspense

Life Tenant receives current income: interest from suspense account & delay rentals

* in AR & OK bonus to LT

Front 5

Open Mine Doctrine

Back 5

If life estate is created while "waste" (act which decreases value of loaned or which uses up something that cannot be replaced) is already being committed, the life estate holder is entitled to continue the same waste to his/her benefit.

If applicable, life tenant entitled to royalty

Front 6

developing cotenant vs. non-consenting cotenant

Back 6

developing: operating (personally or through lessee)

non-consenting: non-operating (i.e. did not sign lease

Front 7

Duhig Rule

Back 7

- mineral & royalty interests (not OGLs)

-Warranty Deeds only/Warranty Clause

- convey more then own & reserves interest

-priority to granted interest, rather then reserved interest

-construed against grantor

-Deed does not indicate prior reservations execepted

Front 8

KS Statute No. 58a - 1013 (Trusts)

Back 8

- Copy of Trust not required

-Trust Certification

-Summary of Trust

Front 9

Conservator

Back 9

Controls Estate

Front 10

Arkansas - Statutory Pugh Clause

Oklahoma Statutory Pugh too

Back 10

Leases taken after 7/4/1983

Lands terminate 1 year after primary term if not in producing unit

Front 11

Purpose of Bankruptcy & Types of Bankruptcy

Back 11

1) reorganizes entity

2) distributes assets

Chapter 7: Liquidation

Chapter 11: Personal - reorganization

Chapter 13: Business - reorganization

Front 12

Michigan Pooling

Back 12

40 acres for all wells in Michigan

Antrim Shale: originally 40 acres; in 1983 5 sections were spaced at 160 acres; 1994: 1 well per 80 acres (Uniform Spacing Pattern)

Front 13

Arkansas Pooling

Back 13

-640 acres (can be split into N2 & S2 of 2 sections)

- Horizontal Fayetteville may be 2 full sections

-lower carpenter formation (less then 2,500 ft) usually size of lease

Front 14

Bond for Michigan State Lease

Back 14

-according to # of acres

-$2,000 minimum; usually a Certificate of Deposit

Front 15

Kansas

Real Property vs. Personal Property

Back 15

Mineral Interest = Real Property

Royalty Interest = Personal Property

Front 16

Michigan Dormant Mineral Act (1963)

Back 16

- no activity on severed mineral tract for 20 years, the O&G went dormant (suspended/inactive) and reverted to the surface owner

- activity = leasing, sale, mortgage, interest transfer, fining for drilling permit, filing Claim of Interest, etc. Claim of Interest required even if tract is active, HBP and owner is getting $

Front 17

Accommodation Doctrine

Back 17

Pre-existing surface use can be 'easily' accommodated by O&G company - the company must accommodate;

Front 18

After-acquired title doctrine

Back 18

-over-conveys property

-later acquires more ownership in over-conveyed property

-interest auto transfers to person that was conveyed less then originally purported

-binding to original grantor & successors

Front 19

Warranty Deed

Special Warranty Deed

Quitclaim Deed

Back 19

WD - no cloud in title, transfers all guarantees

SWD - no cloud in title, no protection from previous owners

QCD - simply gives grantee anything owned by grantor

Front 20

Partition

Back 20

Judicial proceeding involving cotenants

1) in kind (dividing property)

2) forced sale (ordering property to be sold and dividing the proceeds)

Front 21

Non-Participating Royalty Interest vs.

Overriding Royalty Interest

Back 21

NPRI - Revenue from Lessor's interest

- does not terminate when lease terminates

ORRI - Revenue from Lessee's interest

- terminates when lease terminates

Front 22

Vara

Back 22

- Spanish for yard

-larger in E. Texas then W. Texas

-1919 - defined as 33.3333 inches

Front 23

Labors

Back 23

177.14 acres or 1 million square varas

Front 24

Leagues

Back 24

25 labors or 4,428 acres

Front 25

Rods

Back 25

16.5 feet

Front 26

acre

Back 26

43,560 square feet

Front 27

arpent

Back 27

1,91.8 feet or .845 acres if square

Front 28

chain

Back 28

66 feet

Front 29

link

Back 29

1/100th of a chain or 7.92 inches

Front 30

Judgment of Possession

Louisiana

Back 30

- legal procedure which places heirs/devisees in possession of property regardless if party died testate or intestate

Front 31

Strohaker Doctine

Back 31

-Arkansas

-reservation/grant of minerals/mineral rights w/o specific reference to mineral

-before 1900 O&G not included

-after 1905 O&G included

Front 32

What state requires both husband & wife to always execute documents dealing with real property? Why?

Back 32

-Arkansas

-conveyance to H&W creates tenancy by the entirety (unless otherwise stated)

-spouse must release his or her dower or curtesy interest

Front 33

Dissolution of Tenancy by the Entirety

Arkansas

Back 33

-not destroyed by conveyance from only one spouse

-DIVORCE before 3/28/1947: court could destroy with consent; 3/29/1947- 3/7/1975 - court could destroy if specified; after 3/8/1975 - automatic disolution

Front 34

Arkansas Dower/ Curtesy rights

Back 34

-with children: spouse = 1/3, children 2/3

-without children: spouse = if NOT ancestral 1/2 fee simple, if ancestral 1/2 life estate

-married 3+ yrs, no children = all of estate

Front 35

Arkansas Homestead

Back 35

- outside city, town, village: >160 acres & <$2,500 or 80 acres

-in city, town, village <1 ac unless value >$2,500 or 1/4 acre

-outside city, town, village owned & occupied as residence, part of city/town, rural & agricultural use

Front 36

7 Guidelines

Arkansas' version of Uniform Partnership Act

Back 36

1) 2 or more people for profit intent

2) property acquired by ptnrshp

3) ptnrship authority (a) normal business (b) authorized by other partners

4) Statement of Authority

5) A partner can file statement of denial to limit authority

6) all ptnrs equal rights, unless in writing

7) spouse has no dower/curtesy rights

Front 37

Arkansas

Joint Tenants

Back 37

-before July 15, 1991 - created if intent was to create JT with ROS

-after July 15, 1991 - must contain language for JTWROS

-unlike tenants by entirety, conveyance by 1 owner destroys JT & creates tenants in common

Front 38

Arkansas Uniform Transfers to Minors Act

Back 38

- transfers property to minor without court

-do not need guardian

-easier for custodian to admin rather then placed in trust

-specific mention of Act in deed

-grantor & custodian cannot be same

Front 39

How many Arkansas counties are divided into 2 judicial districts?

Back 39

10: Arkansas, Carroll, Clay, Craighead, Franklin, Logan, Mississippi, Prairie, Sebastian & Yell

Front 40

In NM, a lease gives the lessee what rights?

Back 40

fee simple determinable ownership of the mineral estate; terminates per lease terms.

Front 41

2 common fee oil and gas lease forms in NM

Back 41

1) Unless Lease Form (creates fee simple determinable ownership)

2) Drill or Pay Lease Form (right of termination)

Front 42

Summarize NM Royalty Payment Statue:

Timing, penalties, exceptions

Back 42

-6 months after 1st sales

-45 days after end of calendar month which pymt received by payor

-18% interest unless:

-less then $100, no DO, question about entitlement

Front 43

Penalties/Risks for failure to pay timely shut-in gas royalty in NM

Back 43

-cannot use as lease savings provision

-if not made in primary term, cannot be used at end of term to save the lease

Front 44

Descendants, Ascendants and Collaterals

Back 44

Descendants - children, grandchildren, etc.

Ascendants - parents, grandparents, etc.

Collaterals - common ancestor - siblings, aunts, cousins, etc.

Front 45

intestate succession in Louisiana:

generation, direct line, collateral line

Back 45

-each generation = 1 degree

-direct line = # of generations = # of degrees

-collateral line = # of generations between relative and common ancestor + # of generations between common ancestor and deceased = # of degrees

Front 46

Doctrine of Representation - Louisiana

Back 46

-representative takes place, degree and rights of person needing represented (only deceased persons).

-example: children represent deceased parents

-never takes place in favor of asendants

Front 47

Louisiana rules of intestacy of community property for deaths after 1/1/1982

Back 47

Usufruct (life estate) to spouse, terminates at death or remarriage and will pass to descendants (naked owners) (remainderman)

Front 48

Louisiana rules of intestacy of separate property for deaths after 1/1/1982

Back 48

-100% to descendants

-Usufruct (life estate) to parents, terminates at death or remarriage and will pass to siblings or their descendants

-to surviving spouse only when no descendants, no parents, no siblings or descendants from them

Front 49

Louisiana intestacy for 1/2 blood siblings

Back 49

-divided into 2 equal shares:

-full blood siblings take equal shares of both

-1/2 blood siblings only receive equal share of 1/2 of original division

Front 50

Usufruct

(Louisiana)

Back 50

-similar to life estate

-right of limited duration over property of another

-usufructuary and naked owner

Front 51

Usufruct of Land

vs.

Usufruct of Mineral Rights

Back 51

Land - title to minerals is part of land; needs naked owner consent to execute OGL

Mineral Rights - mineral rights are segregated from land (ORRI); does not need naked owner consent and naked owner bound to OGL.

Front 52

Donation mortis causa

Back 52

donation which takes effect on on death and donor disposes of all/some of property (i.e. a will)

Front 53

Testator

Back 53

person who makes a will

Front 54

Capacity

Back 54

ability to make a will

Front 55

Types of Willis in Louisiana

Back 55

current

-OLOBGRAPHIC

-NOTARIAL

Previous Types -Mystic or sealed -Nuncupative or open -Statutory

Front 56

Interdiction

Back 56

status of person who has lost control of his/her own interests (has guardian)

Front 57

Louisiana Ownersip

Back 57

-surface/minerals CANNOT be separated

-Servitude: right to use something belonging to someone else (10 yrs)

-Prescription: revering back of mineral rights use it or lose it principal

Front 58

Types of Louisiana Units

Back 58

-Commissioner's Unit - commission apvd after hearing

-Declared Unit - determined by operator, commission apvd

-Voluntary Unit - determined by operator & royalty owners

-Fieldwide Unit - large acreage/field, 75% of owners must approve & commission apvd

Front 59

Pennsylvania Dormant Oil & Gas Act

Purpose

Back 59

-title curative mechanism to develop subsurface

-excludes CBM

-purpose was NOT to vest surface owner with title of severed intersets

Front 60

Pennsylvania Dormant Oil & Gas Act

Back 60

-any interest owner can petition county court

-diligent efforts needed to location unknown owners

-Petitioner must appoint trustee for unknown owners

-Trustee must be a financial institution (authorized in PA)

-subject to escheat after 5 years

-payments should be made within 6 months

Front 61

Pennsylvania Royalty Provision

Back 61

- minimum 1/8

-recent lawsuits: lessors claim no deducts prior to calculating 1/8 royalty

Front 62

Adverse Possession

Pennsylvania

Back 62

method of acquiring title to land against all others, including record owner, through certain acts over uninterrupted period of time.

- adverse for 21 year period

-possession must be actual, continuous, exclusive, visible, notorious, distinct & hostile

Front 63

Pennsylvania

Roads,Highways & Railroads

Back 63

- ownership unclear

-obtain QCD or file Quite Title Action

Front 64

Escheat

Back 64

Unclaimed intangible property transferred to the state for safekeeping

-purpose: consumer protection, relieve holders of liability & citizens benefit from increase in state revenues

-most states abandonment periods of 3-5 years

Front 65

Escheat Reporting Guidlines

Back 65

-Report to state of apparent owner's last known address; if no address to holder's state of incorporation

Front 66

Escheat Current Balance

Back 66

when earliest payment is abandoned all future payments deemed abandoned as well.

Front 67

Before you Escheat

Back 67

Send written notice (aka due diligence letters)

60 - 120 days before property is due to be remitted

-not required if under certain dollar amounts ($25-$100) or if mail has previously been returned from address

Front 68

Kentucky Escheat

Back 68

-exempts reporting royalties entirely - but companies usually report to holder's state of incorporation.

Front 69

Oklahoma Escheat

Back 69

-mineral proceeds related to forced pooled units go to Oklahoma Corporation Commission.

-held for 7 years

-transferred to Oklahoma treasury for Unclaimed Property Fund

-OK Treasury to transfer monies to state of last known address

Front 70

Wyoming Escheat

Back 70

-production proceeds that can't be paid to be placed in a Wyoming Escrow account. If unclaimed after 3 years, payments remitted to Wyoming State Treasurer's Unclaimed Property Division. They will transfer to state of last known address if not WY.

Front 71

Escheat Mineral proceeds

Back 71

"amounts payable for the extraction, production or sale of minerals, or upon the abandonment of those payments, all payments that become payable thereafter."

-royalties, delay rentals, bonuses, etc.

Front 72

Which state has a limited adoption of the common law of England?

Back 72

California

- Common Law rule applied to conflicting titles: "prior in tempore portior est in jure" meaning: First in time is first in right

Front 73

2 types of California Property

Back 73

1) Real/immovable - Land & property affixed to land, material of earth (trees, buildings, soil)

2) Personal/movable

Front 74

2 types of California Ownership

Back 74

1) Absolute - single person has absolute dominion

2) Qualified - shared ownership, ownership is deferred/limited or use is restricted

Front 75

California

Several Ownership

ownership in severalty

Back 75

ownership by a single person is designated as a sole or several ownership

Front 76

California

Ownership of Several Persons

Back 76

1) Joint interests

2) Partnership interests

3) Interests in common

4) Community interest of H&W

Front 77

California

Joint Tenancy

Back 77

-owed by 2 or more persons in equal shares

-single transfer, expressly declared to be JT

Front 78

California

Joint Tenancy Severance

Back 78

may be severed w/o consent of other JTs:

1) deed to 3rd party or 2) written instrument evidences intent to sever the joint tenancy

-does not terminate ROS unless:

1) recorded and 2) executed/acknowledged not earlier then 3 days before death and recorded no later then 7 days after death

Front 79

California

Partnership Interest

Back 79

- owned by several person for partnership purposes

Front 80

California

Interest in common

Back 80

-owned by several persons, not in joint ownership or partnership

Front 81

California

Interests as to time

Back 81

-present: immediate possession

or

-future: future possession

-perpetual: duration equal to that of property

or

-limited: duration less than that of property

Front 82

California

Types of Estates

Back 82

Either

1) estates of inheritance or perpetual estates: fee simple or absolute feel; freehold

2) estates for life: freehold

3) estates for years - chattel real

4) estates at will - chattel interests

Front 83

California

Servitues

Back 83

Land Burdens/Easements:

attached to land

ROW, pasture, fishing, taking game, water, wood, minerals, business, sports, , etc.

not attached to land:

- pasture, fishing, taking game, right of taking water, wood, minerals:

-The right to remove part of the substance

Front 84

Who can grant servitude in CA?

Back 84

-one who has vested estate in the servient tenement

-servitude thereon cannot be held by owner of servient tenement.

Front 85

Terminating Servitued

Back 85

1) vesting of servitude and the right to the servient tenement in the same person

2) destruction of the servient tenement

3) performance which is incompatible with its nature or exercise

4) servitude period is over

Front 86

California

5 ways to acquire property

Back 86

1) Occupancy - quite title only if occupancy has ripened into title by prescription

2) Accession

3) Transfer

4) Will

5) Succession

Front 87

Correlative Rights

Back 87

right to 1) produce from their lands without wast their fair share of that oil and gas and 2) to be protected against wast of and damage to a common source of supply

Front 88

Notice-Race State

Back 88

California

-first to record in good faith or without notice of prior conveyance

Front 89

The Wild Deed

Back 89

- made & recorded out of a particular prior owner prior to the time they acquired title

-made after they acquired title but before the deed by which they acquired title was recorded

Front 90

Transfer-on-death Deed

Oklahoma

Back 90

allow grantor to convey upon grantor's death without a probate

- 11/1/208 Nontestamentary Transfer of Property Act

Front 91

Define Casinghead

Back 91

-gas produced from an oil well

Front 92

Number of States with involuntary pooling statute

Back 92

32

Front 93

In Arkansas, distinction between ancestral and new estates/acquisitions was abolished as to which type of estate

Back 93

heritable estate

Front 94

California

Ancient Mortgages and Deeds of Trust

Back 94

-Expired after 10 years if final maturity date or last date of payment is known - otherwise 60 years

Front 95

4 rules/requirements for

Adverse Possession in Texas

Back 95

1) Open

2) hostile (adverse to the interest of others)

3) continuous

4) peaceful

Front 96

Oklahoma

Blanchard Decision

Blanchardizing

Back 96

Royalty owners received 1/8 of everyone's proceeds, not just 1/8 of what their lessee sold.

Front 97

Effective dates:

Production Revenue Standards Act

(PRSA)

Natural Gas Market Sharing Act (NGMSA)

Back 97

PRSA - eff 7/1/1993

NGMSA - eff 9/1/1992

Front 98

Which of the following are subsequently created interests under OK SB168?

ORRI

Fee Lease Royalty

Federal Lease Royalty

Indian Lease Royalty

State Lease Royalty

Back 98

ORRI

Federal Lease Royalty

Indian Lease Royalty

Front 99

True or False

the OK PRSA

Production Revenue Standards Act

did NOT requiring balancing at the time the act became effective

Back 99

True

Front 100

Are interest owners permitted to remove themselves from the operation of the PRSA?

Back 100

yes - by written agreement

Front 101

Oklahoma

alienable vs. inalienable

Back 101

alienable - able to be transferred to new ownership

vs.

NOT ABLE

Front 102

Jurat vs acknowledgement

Back 102

a sentence at the bottom of a document that simply says "subscribed and sworn before me" followed by notary

acknowledgement - notary knows the signor personally or has seen positive ID

Front 103

True or False

In Oklahoma, if spouse dies intestate and is survived by one or more minor children, the surviving spouse can act on behalf of the minor children when the property is being sold

Back 103

False - a legal guardian must be appointed by court prior to property being sold. Not automatically the surviving spouse.

Front 104

Oklahoma

Rebuttal Presumptions Statute

Back 104

Cannot rely but cannot ignore